---
schema_version: "secwatch.filing_event.v1"
accession: "0001758021-25-000007"
form_type: "8-K"
ticker: "KRT"
cik: "0001758021"
company_name: "Karat Packaging Inc."
filed_at: "2025-11-06T23:59:59+00:00"
generated_at: "2026-05-16T23:52:04.097717+00:00"
event_type: "earnings"
sentiment: "neutral"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# Karat Packaging Q3 net sales record $124.5M (+10.4% YoY); EPS down on tariff costs

## Summary
- Q3 net sales record $124.5M (+10.4% YoY); net income $7.6M ($0.36 diluted EPS) vs $9.3M ($0.45) prior year.
- Gross margin fell to 34.5% from 38.6% as import duties/tariffs rose to 14.4% of sales (vs 8.6%).
- Q4 guidance: net sales +10-14% YoY, gross margin 33-35%, adj. EBITDA margin 8-10%.
- Board declared $0.45/share quarterly dividend (payable Nov 28) and authorized up to $15M buyback.
- New paper bag contract with national chain expected to add ~$20M annual revenue; US sourcing up to 20.4%.

## SEC filing metadata
- accession: 0001758021-25-000007
- form_type: 8-K
- ticker: KRT
- cik: 0001758021
- company_name: Karat Packaging Inc.
- filed_at: 2025-11-06T23:59:59+00:00
- event_type: earnings
- sentiment: neutral
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 2.02, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1758021/000175802125000007/0001758021-25-000007-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1758021/000175802125000007/krt-20251106.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001758021-25-000007
- JSON: https://secwatch.observer/filing/0001758021-25-000007.json
- Plain text: https://secwatch.observer/filing/0001758021-25-000007.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.